How to work out labour efficiency and capacity ratios

Three ratios show how well a team used its time: efficiency, capacity and activity. Work them out from standard hours and hours worked.

MediumPremium9 min
Task 1Standard hours for the output2 questions

A standard time is the time one unit should take. It is set in advance, from how long the work takes at a normal pace.

The standard hours for the output are the units made, times the standard time for one unit. They show how long the work done should have taken.

Fernhill Furniture, Assembly, August
FigureAugust
Hours in the budget1,000
Hours worked960
Tables assembled126
Standard time for one table8 hours
Task 2The efficiency ratio2 questions

You work out a figure and pick the right answer.

Task 3Capacity and activity3 questions

You work out a figure and match pairs.